AUD/USD to surge towards 0.74 by year-end fueled by rising commodity prices – Rabobank

Climbing commodity prices are set to provide support to the Australian dollar. Subsequently, economists at Rabobank expect the aussie to break with its status of a high-risk currency and forecast the AUD/USD at 0.74 by year-end.

AUD/USD to break with its traditional role of ‘higher risk’ G10 currency

“Commodity exports offer the Australia economy good insulation and should provide support to the AUD/USD.” 

“The strength of commodity prices combined with Australia’s much improved current account position suggests that there is good reason to expect AUD/USD to break with its traditional role of ‘higher risk’ G10 currency.” 

“We have retained our year-end forecast of AUD/USD 0.74.”